Asia’s gasoline refining profit margins saw an increase last week as demand remained strong, particularly with the driving season approaching in the United States, the largest market for gasoline. On Monday, the gasoline crack rose to $10.96 per barrel over Brent crude, compared to $9.97 in the previous session.
In April, China’s gasoline exports are projected to fall below the first-quarter monthly average of approximately 345,000 metric tons, reporting only 175,000 tons thus far. This figure also trails the expected 2024 monthly average of 810,000 tons, according to assessments from LSEG.
Experts anticipate that gasoline outflows will remain limited in May due to around 1.8 million barrels per day of China’s refining capacity being offline for maintenance, as highlighted by LSEG Research in a recent note. Meanwhile, the naphtha crack saw a decrease of about $5, landing at $83.70 per metric ton on Monday.
This drop in naphtha prices was influenced by rumors regarding the potential removal of tariffs on U.S. ethane, which is a cheaper alternative feedstock, dampening hopes for a resurgence in demand from China. In recent news, South Korea’s S-Oil, which is primarily owned by Saudi Aramco, reported losses in the first quarter attributable to its refining and petrochemical sectors.
The company also cautioned that second-quarter margins could be affected by ongoing tariff negotiations in the U.S. and overall market volatility. Additionally, Saudi Arabia, the world’s largest oil exporter, may consider a slight increase in crude prices for Asian buyers in June, marking the first adjustment in three months and reflecting the uptick in benchmark prices this month.
Lastly, there were two gasoline trades reported in Singapore’s cash deals.